Mortgage Glossary
Principal
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Principal is the amount you originally borrow on a mortgage, and the remaining balance you still owe over time.
What Principal means
Each payment reduces principal a bit more as the loan amortizes. Paying extra toward principal shrinks the balance faster, shortens the term, and cuts total interest.
Florida example
A Florida borrower with a $350,000 starting principal who adds $200 a month toward principal can shave years off a 30-year loan and save tens of thousands in interest over its life.
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